Real estate technology, also known as property technology or proptech for short, is the term used to describe the broad application of technology in real estate markets. It’s an innovative approach to real estate in which technology optimizes the way people research, rent, buy, sell, and manage a property.
Over the last several years, proptech has become an increasingly big business. Crunchbase reported that venture-backed companies in the space raised nearly $21 billion in 2021, and The Real Deal revealed in April that VC funding in proptech had reached $4 billion in the first quarter of 2022 alone. In total, there are now more than 9,000 companies across 15 categories focused on transforming commercial real estate.
Many proptech innovations focus on streamlining operations, reducing costs, or improving experiences for landlords and tenants. Following are three examples of how proptech is propelling the CRE industry forward:
- Speeding up Construction with Drones and 3D Printing
In a previous post, we wrote about how CRE firms are at the helm of the booming data center industry. When it comes to constructing these new facilities, proptech can help engineers and contractors operate faster and more cost-effectively. For example, drones are being used for construction site surveillance and protection, as well as to help optimize energy efficiency by monitoring temperature and other environmental metrics.
With 3D printers now capable of creating walls and processing cement, the technology is reshaping how buildings are constructed. For example, 3D printing is being used to ‘build’ pre-fabricated elements in advance, as well as to create customized materials in real time right on construction sites.
- Optimizing Facilities Management with IoT Sensors and Devices
Facilities management technology isn’t new. In fact, the first workplace management systems were introduced in the 1970s. However, next-generation integrated workplace management systems (IWMS) are enabling facility managers to implement automation and gather valuable data for more informed decision making in ways they never could before.
Modern IWMS integrate multiple software tools to help workplaces optimize facilities management and maintenance, capital project management, real estate lifecycle management and resource management. When combined with IoT-enabled devices and sensors, these solutions can provide real-time insights for optimizing space and asset utilization, energy consumption, and more.
For example, real-time data can highlight anomalies in energy use by major systems, which can indicate issues with equipment. By examining the trends in energy consumption throughout a building, facility managers can identify target areas within the building that need upgrading in order to improve energy use.
- Boosting Tenant Experience with Mobile Apps
Increasingly, mobile apps that focus on tenant experience are becoming the must-have technology in commercial real estate. Most are designed to strengthen landlord-tenant communication, as well as help landlords provide a strong in-person tenant experience for workers when they are in the office, as well as a digital tenant experience for those working from anywhere.
Many of the mobile apps available today boast a variety of digital health and wellness amenities, enable physical building access, provide room booking and wayfinding services, and help with community management (think social networking and events).
Proptech and the Importance of Network Infrastructure
From structured cabling solutions to connect IoT devices to IP networks, to comprehensive enterprise network solutions to connect people, information and technology, the right network infrastructure makes it much easier for CRE leaders to adopt new technologies and applications. Whether you are developing new office space or renovating existing space in response to changing workplace dynamics, Panduit can provide insights, solutions and the network infrastructure required to help you succeed.
Download our solution guide, Network Infrastructure for Commercial Real Estate, to learn more about robust, reliable solutions for commercial real estate environments.